Archive for the ‘investing’ Category

I was reading a story about my friend on FB. She has had her struggles with many things growing up and is currently a single Mom working to make it on her own. She recently lost her job due to downsizing. Right now, many are thinking, she’s probably living off my dollar. Unemployment, subsidy for her kiddo and so on. Not so fast I say. Here’s what she did: 37 applications filled out in 1 day. 7 interviews the next and BAM! A J-O-B that she started the next day. She does not know how much I admire her for this. Well Done Kiddo, Well Done.

As I listen to the birds chirping, with 10 inches of ice on the ground, they are singing a song. Spring is near, so is your future. While things may look bleak right now, spring is coming and things will get better. If things look bleak to you, do what my young friend did. Pick yourself up, dust yourself off and start all over again (I think this may make a song). We live in the greatest country in the world. I fully believe we can change our lives and do more here than anywhere else. We don’t have to accept our lot in life, we can make it better, if we choose. No one will do it for us, some will help us, yet we need to do it. Ask for help, accept what comes your way and keep pushing forward. Or lay there and wallow in your self-pity.

My own Grandfather came over from Germany. He was forced out by his family who feared the Nazis. They couldn’t get everyone out so they sent him. He hated it. He longed to return. As things got progressively worse over there he kept going. He had 2 jobs to support his family. He worked as a super in NYC. A super cleans the buildings, puts out the trash and feeds the furnace if needed. They also make minor repairs. For this they get a place to live and a small stipend. He also worked at Nathan’s in Coney Island. He did this to support 5 kids and his wife. They all pitched in.

A success story about 2 individuals doing what they can to survive in conditions that are not ideal. A very promising future for us all. Spring is near, rebirth can begin. Chase the American Dream with everything you have, everything HE gives you, and keep moving forward. God Bless, Richie Rich

You can’t judge a book by its cover or a home from the pictures. As a Realtor part of my job is to make certain the homes I list for sale look good in the pictures. This is especially true when folks are looking online. When I do a good job, people look at the home. Once of the nicest compliments I receive is when someone says, it looked so good in the pictures. To help me accomplish this I use a videographer as well as a photographer. They do truly amazing work. Thank you SP Digital.

I was reminded of this when I ordered a book from an online source. When it arrived I was surprised and somewhat disappointed at how small the book looked like in real life as opposed to what the picture showed. I was further reminded when a friend called to ask my thoughts on someone buying a home sight unseen except for pictures. I suggested that if it wasn’t a person buying it as an investment I would be quite uncomfortable. I guess I should have listened to my own advice and gone to the bookstore.

When I first got in the business I was working a million dollar land deal with out of state investors. In talking with my broker I said I could never understand how someone could buy a property without ever seeing it in person. I still feel that way, even more so with homes. However I have seen and heard of many buyers never physically going to a home before making an offer to buy. Very scary for a seller, what happens when they show up to inspect your home or move in and they don’t like it? Or something was edited out of a photo or video; YIKES trouble for the listing agent as well as the buyers’ agent. I may have heard of a lawsuit or two. I have also visited homes where the photos did not do it justice and my clients got a very good deal. The price was great, the neighborhood worked and when we actually walked through it, WOWZA!!!

So while it is good to start with an online search, please visit the home, in the daylight and see if you do like it. Sometimes you may be disappointed however sometimes you find a jewel in the rough. All the Best Richie Rich

2016 has come and gone. The numbers are in. So let’s see how I did. I predicted an increase in sales price of 2-4%. The numbers show an increase in average sales price in Ada County of 5.76% and a median increase of 6.94%. We did better than I anticipated. Still I love that it was not double digit increases. Slow steady growth is good for all. I predicted an interest rate of 4-5%. I nailed that one, atta boy, I do give myself an atta boy when I earn it.

Residential resale led the way in pricing up 6.27% on average,6.81% median sales price increase. New construction prices were flat at -0.06 on the median sales price and -0.38 percent on average. Yes dear readers those were both minus signs. New construction however boomed in number of sales, up 37.99% WOWZA up 38% and residential resale in Ada County was up 8.22%.

So, what do I see for the future? Great question. I see interest rates staying the same 4-5%. If we get too much inflation than it may go higher however I don’t see that happening. If rates go up to 5 and beyond, it is still a great rate and people will continue to buy. The government will try to do some things to help, such as tax credits however most first time buyers will not appreciate the benefits until they file their taxes. So, remember First Time Home Buyers get the cycle going. If they stop all sales will be affected.

I believe average sales price of homes in Ada County will stay steady at 4-6%. Inventory levels will remain on the low side which help drive prices up. Even though prices are going up buyers are remaining patient and adapting their buying power to find a home that meets their budget. They are stretching a little more and are comfortable that they will not be house poor. They want homes in good to great condition. No fixer uppers at this time. All of this will combine to keep prices steady and not runaway.

What do you think will happen? If I had a crystal ball I would be retired and somewhere warmer right now. Happy House Hunting, All the Best Rich

Some people feel better giving money away. You can do it. It doesn’t matter how much. Tip your favorite barista an extra buck or two and take a minute to tell them, yes talk to them, and tell them how much you appreciate their service. Pick your favorite charity and send them an extra donation. Stop by their offices and tell them why you chose them and thank them in person.

Want to do more that doesn’t cost any money. Write them a compliment card for someone. We all complain when things go wrong, let them know that they are doing something tight. Hold a door for someone. Go up to that person in the office, you know who, that person you may not want to talk with and give them a big smile. Help a coworker complete a project or a cruddy job. Let someone in a long line of traffic cut in ahead of you.

We already talked about a deep relaxing breath, take a few of them. I worked with a guy who arrives at a job where the clients were angry, frustrated etc. He would go have a cup of coffee before going in. It would frustrate the daylights out of his son who wanted to get in there and solve the problem. His Dad would say, “They have waited this long, five more minutes more won’t hurt.” He was taking a deep breath.

This is the Season of Gratitude, not attitude. Remember the Golden Rule; Treat others as you want to be treated. It is mentioned in the Bible at least 5 times. I tell my clients if I say something more than once you should probably listen. We should probably listen. Tis the Season, Merry Christmas to all, Richie Rich

In the fall of 1621, the religious separatist Pilgrims held a three-day feast to celebrate a bountiful harvest, an event many regard as the nation’s first Thanksgiving. It eventually became a national holiday in 1863 when President Abraham Lincoln proclaimed the last Thursday of November as a National Day of Thanksgiving. Later, President Franklin Roosevelt clarified that Thanksgiving should always be celebrated on the fourth Thursday of the month to encourage earlier holiday shopping, never on the occasional fifth Thursday.

In the year 1621, the Pilgrims held their first Thanksgiving feast. They invited the great Indian chief Massasoit, who brought ninety of his brave Indians and a great abundance of food. Governor William Bradford and Captain Miles Standish were honored guests. Elder William Brewster, who was a minister, said a prayer that went something like this: ‘We thank God for our homes and our food and our safety in a new land. We thank God for the opportunity to create a new world for freedom and justice.” Linus Van Pelt Peanuts in A Charlie Brown Thanksgiving

“a roof over our heads, heat in the home, food on the table surrounded by family and friends all Blessed by the Lord. Everything else is an extra” Rich Nesbit

So now you have some things to help you celebrate Thanksgiving. A True American holiday, founded by the Pilgrims. 2 stories to share and a quote or a prayer, use it as you would like.

As is the tradition in my home, here is what I am thankful for this year. I have a deeper more loving relationship with my bride and children. I am always thankful for all my Lord and Saviour Jesus Christ has given me. I am thankful for my new editor who has chosen to keep me on as a columnist.

I am thankful for all my friends at the Steelheads. What a great group.

I am thankful for my business being able to support my wife, children and the lifestyle we are leading where family is first. A true blessing. A special thank you to all who used my services and helped me reach my goals.

I am thankful for all the people in the businesses that support my business as well. Title Companies, loan officers, inspectors the list is endless.

I am thankful for the roof over my head and the food on my table.

I am thankful for you my dear readers. I am absolutely amazed how many times people recognize me and send me comments on my articles. I am and feel so blessed every time it happens. Thank you dear readers.

My daughter turned 18 this year. On her birthday we did many exciting fun things that an 18 year old can legally do. One of the most exciting things left to do is vote. She has watched her Mom and I vote for years. This year she gets to join us.

The other night I asked her if she knew who she was voting for and if she knew the issues. “Not completely Dad” she says, “I know who I want for President.” Good start let’s look at the rest and figure it out. So we went out to the Ada County Elections https://adacounty.id.gov/elections/ clicked on voter information and view my ballot, we found our polling place via the polling place locator and pulled up our ballot. WHEW, somewhat hard to find. Got lost a few times however the journey was worth it.

We looked at the candidates and spoke about them. We argued about the issues, loved it. Dad, what if I don’t know who these people are? How do I choose? I explained that not choosing either candidate is a good option. Not the best mind you that’s why we look before we go into the booth. We research the issues. As we read them she asked “why can’t they be written in easier language?” ah the joys of politics. We talked about when we had a vote and the yes meant no and vice versa. Talk about confusing. We talked about the candidates running unopposed. “Do I have to vote for them?” no, you could write in someone else’s name.

All of us were surprised at the number of candidates running for President 8 of them. Also surprised by the CWI bond, a good thing I believe, currently serving 20,000 students. Gets my vote. The library bond is on the ballot. I vote yes, my kiddos were and are turbo readers and I think we should support reading more. Please vote yes. The Western Ada Recreation Bond for 2 swimming pools is an interesting question. Many don’t like the idea of paying to build a pool and then paying to get in. I loved playing in the neighborhood pool as a kid. However this bond would cost home owners an estimated $14.42 per $100,000 of home value, an additional couple of bucks per year. On a $300,000 home the owner would pay $3.60 per month. For many, that price is less than a cup of coffee. I’ll vote yes. Whether you agree or not, please get out and vote. All the Best Richie Rich

I have a goal to own rental properties. Might be a good fit for me considering the business I am in. As a bonus I get to see many different business models for investing in housing. The other day I heard of one that I have not seen before.

I participate in a coaching program that offers more than just sales advice. We believe in a well rounded life that includes growth in 5 different areas. Spiritual, family, business, financial and personal are the 5 Circles we intertwine and balance. The founder of the company not only tells it like it is, he practices what he preaches. During the recession he liquidated $30,000,000 that’s 30 Million in real estate holdings to keep his business alive. He had one commercial building he left empty for a year. He was able to do this using an investment system that helped him succeed. Hmmm, he has captured my interest again.

So how’d he do it you say? I’ll tell ya. He would buy a property and hold it. He would not buy another property until he owed less than half on the property. Less than half! What about leverage, what about the great deal sitting in front of you. Nope he said, just wouldn’t do it no matter how badly it fried his backside. Considering he did not lose everything like others did I have to consider what he says quite seriously.

I am reminded of a call I received on day as the recession was beginning. The buyer wanted to buy million dollar properties for $500,000. I laughed and then asked why I would not buy them myself for that price. He said I could not buy them all. I loved that response. I can’t possibly buy every deal that comes to me. I only wish I could. There will always be another opportunity. So perhaps the 50% idea is not that farfetched as it sounds.

Some investors use a cash only model, some use the 20% down, some use 20% down that they borrow and many other models. I would prefer to be an all cash investor. Perhaps 20% down and then wait and be patient might be better. Hmm time to think. All the Best Richie Rich

Spooky OOky Homes. I was looking around to see where I might find haunted houses in the area. I found several where gruesome murders had occurred. Since I am precluded by law from stigmatizing a property I will not, cannot discuss these homes. Or Haunted ones. Go online you will find them.

Per Realtor.com “Stigmatized propertiesare homes where a real or rumored event occurred that didn’t physically affect the property but could adversely impact its desirability.” That is where the courts have said that by disclosing such information will put a home in such an unfavorable light the value is adversely affected, price goes down. Both for a seller or a tenant. Some examples would include homes that are haunted, where murders have occurred and someone has died naturally or by suicide. Serious illness, such as aids, cult activity and famous adulteries are also considered stigmatizing. I say if you need to know, talk with the neighbors.

So, keep in mind, these things do not need disclosed. How about you? Could you live there? I think there is a buyer for every home. I also think someone would pay a premium for that opportunity. Not me mind you however there is always a buyer willing to buy, cost is always the issue. Time is also an issue. If the home was in the news it can take longer to sell. The mansion where the Manson Murders took place reportedly took 20 years to sell however it sold for market value. Hmmm I think I would rather have bought the Playboy Mansion. Of course, the Playboy Mansion was about 20 times the cost however it does come with Hef. According to a 2000 study from Wright State University of stigmatized homes, these home tend to sell for 3% below value and take 45% longer to sell.

It was fun looking at the homes and reading the stories behind the “haunting”. Some were gruesome murders, I would just as soon not read those stories in detail. For me the funny ones were the bars where patrons and staff had seen visions. Could be the drink I think. Still makes me smile. Have a Happy Safe Halloween, Richie Rich

As always my statistics come from Intermountain MLS. Numbers look good here again however I think you will be surprised. So far for the year home prices are up only slightly more than 7%. Number of homes sold is up 8% compared to last year. Existing home sales are up 7.5% and new construction is up 43%. However prices are key. Residential resale prices are up 6.35% and new construction is flat at 1.62% up. People are buying new homes because they can’t find what they want, prices are flat in new construction because they have enough inventory. Basic inventory supply and demand rules are in effect.

So Rich, now what happens? We keep sailing along. Homes are still selling, prices are holding, in some price markets they are a dropping. Interest rates are stabile. I don’t think we will see any changes until the beginning of the new year.

But Rich, the election is coming. Correct historically speaking housing prices tend to drop after an election regardless of who wins. Prices tend to drop because people are uncertain of how things will go with a major change. This uncertainty freezes people and creates a wait and see attitude especially in major purchases. However we have quite an usual market coming out of the recession and still a shortage of inventory. I believe we will see a slight increase next year. Of course wait nine months and we will see. If you would like to see how your neighborhood did go to:

While you are enjoying the last official BBQ of summer please don’t forget the American worker.

The first Monday in September is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the workers. Workers have made the strength, prosperity, and well-being of our country. They are the backbone of this great country.

The form that the observance and celebration of Labor Day should take were outlined in the first proposal of the holiday — a street parade to exhibit to the public “the strength and esprit de corps of the trade and labor organizations” of the community, followed by a festival for the recreation and amusement of the workers and their families. This became the pattern for the celebrations of Labor Day. Speeches by prominent men and women were introduced later, as more emphasis was placed upon the economic and civic significance of the holiday. Still later, by a resolution of the American Federation of Labor convention of 1909, the Sunday preceding Labor Day was adopted as Labor Sunday and dedicated to the spiritual and educational aspects of the labor movement. (adapted from US DOL)

Soon it will be time to winter fertilize and re seed the lawn. Trim the hedges and possibly the trees. What else could you, my dear reader be looking at? You could clean and touch up. Make certain the gutters are free of debris, if the caulking around the windows, is cracked or missing fill it in or replace as needed. When is the last time you cleaned your dryer vents? Is the dryer taking longer and longer to dry the clothes. Perhaps the vent is clogged.

With the weather being what it is time to think about painting. If you are wanting to sell in spring you may not want to wait for spring. It is amazing to me how many people will spend hours washing their car, every week in some cases, and not spend any time taking care of their home. So be a Dagwood, work in the yard, have a dagwood for lunch that day as you enjoy the fruit of your labor as fall approaches. And enjoy a good game of football, whichever you like.

Parts of this article came from original columns from 2009 and 2010. My goodness, have I been writing that long. Certainly doesn’t feel like it. All the Best Richie Rich